RESP Overview



It has been said that it is never too early to start saving for your child’s post-secondary tuition. This is very true when it comes to savings in general, but even more so for RESPs because the federal government can contribute to an RESP through the Canada Education Savings Grant (CESG) program. A lifetime maximum amount of CESG a child can obtain is $7,200. Furthermore, in British Columbia, an additional one-time grant called the B.C. Training & Education Savings Grant (BCTESG) in the amount of $1,200 is also available for eligible children. Lastly, there is also another program, known as the Canada Learning Bond (CLB), that members can apply for, which provides a maximum lifetime benefit of up to $2,000. With these programs in mind, V.P. Credit Union is here to help and offers exceptional advice, service and term deposit products when it comes to Registered Education Savings Plans.
 
General eligibility criteria - BCTESG
 
  • The beneficiary must be between ages 6 to 9 years old and the application for this grant must be no later than the day prior to beneficiary’s 9th birthday.
 
  • Both the primary caregiver and the beneficiary must be British Columbia residents at the time of the application.
 
For more information on the BCTESG program, please refer to our webpage by clicking HERE. 
 
General eligibility criteria - CESG
 
  • The CESG is based on contributions made by the subscriber.
 
  • The federal government matches 20% of the member’s contribution up to $2,500.00 per calendar year and a maximum lifetime amount of $7,200.00 can be obtained from this program.
 
For more information on the CESG program, please refer to the Canadian federal government website by clicking HERE.
 
General eligibility criteria – Canada Learning Bond
 
  • The CLB may be applied for at the same time the RESP is opened
 
  • The amount of the eligible grant is dependent on the income earned by the subscriber
 
For more information on the CLB program, please refer to the Canadian federal government website by clicking HERE.
 
If you are interested in learning more about Registered Education Savings Plans and would like to set one up, please give us a call at 604 683 2434 or email invest@vpcu.com.
 
 
Product Facts

100% of the deposits are insured by the Credit Union Deposit Insurance Corporation. For more details, please click here.
 
What you see is what you get. Interest rates are guaranteed.
 
We offer Relationship Pricing to all eligible new and existing members for the majority of our term deposit products. That means it is a win-win for both yourself and VPCU if you bring over more business!

 
Questions & Answers

1. I’d like to setup a new RESP. What should I do?

To ensure the RESP set up is smooth & efficient for you, we recommend you contact us ahead of your appointment for any questions and to allow us time to prepare the necessary paperwork. In view of this, you will need to provide:
 
  1. RESP Beneficiary’s Birth Certificate
  2. RESP Beneficiary’s Social Insurance Number
  3. RESP Beneficiary’s B.C. Service Card
  4. The Name of the Parents/Guardians
  5. The Name of the Primary Care Giver Information & their Social Insurance Number
 
NOTE:  for Family plans, you will require the above information for each child


2. Are there other investment products besides term deposits to invest in?

Unfortunately, not at this time. Currently, we offer term deposits and an RESP savings account. However, if you are looking to invest an amount greater than $50,000, we recommend you speak with one of our investment planning advisors. You can view more information about our investment advisors by clicking HERE.


3. I noticed my quarterly RESP statement looks different than my regular VPCU bank statement. Why is that?

V.P. Credit Union along with many other credit unions in British Columbia, use Central 1 Credit Union to administer its RESP accounts. Central 1 is the “mother” credit union that performs many key banking operations for all credit unions. Thus, Central 1 produced the RESP statements at their office and mails they off to our members accordingly. To learn more about Central 1 Credit Union, please click HERE.


4. Are there any fees to open a RESP?

There are no fees charged when opening a RESP.  


5. What post-secondary schools may students go to in order to use the RESP funds?

A list of all eligible post-secondary schools can be viewed with by clicking the link below. Please note that students may attend international schools as well, not just Canadian schools.

https://www.canada.ca/en/employment-social-development/programs/designated-schools.html


6. What happens if I forget to contribute one year in my RESP? Can I make a bigger contribution next year?

Yes, it is possible to make a “catch up” contribution to your RESP for previous years. However, it is best to discuss this over the phone or in person as there are some conditions.


7. What happens if I have funds remaining in the RESP because either my child decides not to go to school or they didn’t use up all the funds?

There are a number of options you have available with the unused RESP funds.
 
  1. You may leave the money in the RESP for up to 35 years just in case the child decides to change their mind.
  2. You may replace the beneficiary
  3. You may transfer the funds to a RRSP
  4. You may close the RESP
  5. You may transfer the funds to a RDSP
There are conditions to be met depending on which option above is selected. For more details, please view the website link below.
https://www.canada.ca/en/services/benefits/education/education-savings/resp/use.html#h5


8. What are the benefits of a Family Plan?

Contributions from the CESG, BCTESG and interest earned in the plan can be shared between all beneficiaries registered to a Family Plan. The only exception is the Canada Learning Bond (CLB) which must be used by the beneficiary who received the bond.  If this is not used by the beneficiary who received the bond, these funds must be returned to the government.